Defense Department awards $10.17M contract for composite food packages, highlighting long-term sustainment needs

Contract Overview

Contract Amount: $10,169,712 ($10.2M)

Contractor: THE Wornick Company Right Away

Awarding Agency: Department of Defense

Start Date: 2003-12-19

End Date: 2011-04-14

Contract Duration: 2,673 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Defense

Official Description: 200403!00Z027!97AS!013H !DEFENSE SUPPLY CENTER PHILADELPH!SP030003DZ107 !A!N! !N!0005 ! !20031219!20041231!840655021!840655021!063066351!N!THE WORNICK COMPANY RIGHT AWAY!200 N 1ST STREET !MCALLEN !TX!78501!45384!215!48!MCALLEN !HIDALGO !TEXAS !+000046462500!N!N!000000000000!8970!COMPOSITE FOOD PACKAGES !B2 !SUBSISTENCE !000 !* !311422!E! !5!B!M! !E!D!20050331!B! ! !N!Z!A!N!K!2!003!N!3A!Z!N!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MCALLEN, HIDALGO County, TEXAS, 78501

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $10.2 million to THE WORNICK COMPANY RIGHT AWAY for work described as: 200403!00Z027!97AS!013H !DEFENSE SUPPLY CENTER PHILADELPH!SP030003DZ107 !A!N! !N!0005 ! !20031219!20041231!840655021!840655021!063066351!N!THE WORNICK COMPANY RIGHT AWAY!200 N 1ST STREET !MCALLEN !TX!78501!45384!215!48!MCALLEN !HIDA… Key points: 1. Contract value of $10.17 million over its lifecycle indicates significant demand for specialized food provisions. 2. The contract's duration of over 8 years suggests a need for stable, long-term supplier relationships. 3. Awarded to The Wornick Company, indicating a focus on established suppliers with proven track records. 4. The 'Full and Open Competition After Exclusion of Sources' suggests a complex procurement process potentially involving prior relationships or specific capabilities. 5. The fixed-price with economic price adjustment structure aims to manage cost fluctuations over the extended contract period. 6. Specialty canning and subsistence are critical components of military logistics, impacting troop readiness and morale.

Value Assessment

Rating: good

The contract value of $10.17 million for composite food packages appears reasonable given the extended performance period of over 8 years. Benchmarking against similar long-term sustainment contracts for specialized food items would provide a clearer picture of value for money. The fixed-price with economic price adjustment clause suggests an effort to balance cost certainty with market volatility, which is appropriate for long-duration agreements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the competition was intended to be open, certain sources may have been excluded, possibly due to specific requirements, prior performance, or a phased approach. The number of bidders is not explicitly stated, but the exclusion of sources suggests a potentially narrower field than a purely 'full and open' competition.

Taxpayer Impact: The exclusion of sources in the competition process could potentially limit price discovery and may not guarantee the absolute lowest price for taxpayers compared to a truly unrestricted full and open competition.

Public Impact

Military personnel, particularly those deployed or in training, are the primary beneficiaries of these composite food packages. The contract ensures the supply of essential subsistence items, contributing to operational readiness and morale. The geographic impact is primarily on military installations and deployment locations where these food packages are utilized. The contract supports the food manufacturing and packaging workforce involved in producing these specialized items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to source exclusion could impact long-term cost-effectiveness.
Economic price adjustment clauses require careful monitoring to ensure fair pricing over time.
Reliance on a single contractor for a critical subsistence item could pose supply chain risks if not managed proactively.

Positive Signals

The long contract duration suggests a stable demand and a reliable supplier relationship.
The fixed-price element provides some cost control for the government.
Awarding to an established company like The Wornick Company indicates a focus on proven performance and quality.

Sector Analysis

This contract falls within the Defense sector, specifically related to subsistence and logistics. The market for military food packaging is specialized, often requiring compliance with stringent safety and nutritional standards. Spending in this area is critical for maintaining troop readiness and operational capabilities, especially in remote or austere environments. Comparable spending benchmarks would likely be found within other long-term sustainment contracts for food services or specialized rations.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. The award to The Wornick Company, a known entity in this space, suggests it may not have been specifically targeted towards small business participation. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are embedded in the fixed-price with economic price adjustment structure, requiring the contractor to meet delivery and quality standards. Transparency is facilitated through contract databases, though specific performance metrics and oversight reports may not be publicly detailed.

Related Government Programs

Military Rations
Subsistence Supply Chain Management
Defense Logistics Agency Contracts
Food Service Contracts
Operational Rations

Risk Flags

Long contract duration increases exposure to market volatility and performance degradation.
Economic price adjustment requires careful monitoring to ensure fair pricing.
Limited competition may impact optimal price discovery.
Reliance on specialized food items necessitates robust supply chain management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.2 million to THE WORNICK COMPANY RIGHT AWAY. 200403!00Z027!97AS!013H !DEFENSE SUPPLY CENTER PHILADELPH!SP030003DZ107 !A!N! !N!0005 ! !20031219!20041231!840655021!840655021!063066351!N!THE WORNICK COMPANY RIGHT AWAY!200 N 1ST STREET !MCALLEN !TX!78501!45384!215!48!MCALLEN !HIDALGO !TEXAS !+000046462500!N!N!000000000000!8970!COMPOSITE FOOD PACKAGES !B2 !SUBSISTENCE !000 !* !311422!E! !5!B!M! !E!D!200

Who is the contractor on this award?

The obligated recipient is THE WORNICK COMPANY RIGHT AWAY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.2 million.

What is the period of performance?

Start: 2003-12-19. End: 2011-04-14.

What is the historical spending pattern for composite food packages by the Department of Defense?

Historical spending on composite food packages by the Department of Defense has likely been consistent, driven by the ongoing need to supply troops with reliable and long-lasting food options. While specific figures for 'composite food packages' alone are not readily available without deeper database queries, the broader category of subsistence and rations represents a significant and stable portion of the defense budget. Contracts for such items often span multiple years, reflecting the long-term planning required for military logistics. The award to The Wornick Company for over $10 million suggests a substantial and sustained requirement. Analyzing trends in contract awards for similar food items over the past decade would reveal patterns of demand, potential shifts in technology or packaging, and the average duration and value of such contracts, providing context for the current award.

How does the pricing of this contract compare to similar food supply contracts for military personnel?

Direct price comparison is challenging without access to specific unit costs and detailed specifications for comparable contracts. However, the 'Fixed Price with Economic Price Adjustment' (FP/EPA) structure suggests an attempt to balance cost stability with market fluctuations. FP/EPA contracts are common for long-duration procurements where material or labor costs are expected to change. The value of $10.17 million over approximately 8 years implies an average annual spend of roughly $1.27 million. Benchmarking this against other contracts for operational rations or MREs (Meals, Ready-to-Eat) would require detailed analysis of contract line item numbers (CLINs) and quantities. The 'limited' competition aspect might also influence pricing, potentially leading to higher costs than a fully open competition.

What are the key performance indicators (KPIs) typically associated with contracts for composite food packages?

Key performance indicators for contracts involving composite food packages typically focus on ensuring the quality, safety, and timely delivery of the products. Essential KPIs include on-time delivery rates, ensuring that shipments arrive at designated locations by the required dates. Product quality is paramount, measured by adherence to nutritional specifications, absence of defects in packaging, and compliance with food safety standards (e.g., FDA regulations, military-specific requirements). Shelf-life compliance is also critical, ensuring that the food packages meet or exceed the specified minimum shelf life upon delivery. Furthermore, contractor responsiveness to issues, such as order changes or quality complaints, is often monitored. The government may also track cost performance against the contract value and economic price adjustment clauses.

What is the track record of The Wornick Company in fulfilling defense contracts, particularly for food supplies?

The Wornick Company has a significant track record in supplying food products, including composite food packages and MREs, to the U.S. military. They are a well-established entity in this sector, often appearing as a prime contractor or subcontractor on large defense subsistence contracts. Their history likely includes numerous awards and successful fulfillments, demonstrating capability in meeting the stringent requirements of military food provisioning. While specific performance details for every contract are not always public, their continued success in securing substantial contracts like this one suggests a generally positive performance history regarding quality, delivery, and compliance. Reviewing past contract awards and any publicly available performance assessments or past performance questionnaires would provide a more granular view of their track record.

What are the potential risks associated with a long-term contract for specialized food items like composite food packages?

Long-term contracts for specialized food items carry several potential risks. Firstly, there's the risk of contractor performance degradation over time; initial quality and delivery standards might not be maintained throughout the entire contract period. Secondly, market dynamics can change significantly over many years; the economic price adjustment clause, while intended to mitigate this, might not perfectly capture all cost fluctuations, potentially leading to either overpayment by the government or financial strain for the contractor. Supply chain disruptions, whether due to geopolitical events, natural disasters, or issues with the contractor's own suppliers, pose a significant risk to consistent delivery. Furthermore, technological advancements in food preservation or packaging could render the contracted items less optimal over time, but switching contractors mid-stream can be costly and complex. Finally, a sole or limited source situation, even if initially justified, can reduce competitive pressure, potentially leading to complacency and less favorable pricing in the long run.

Industry Classification

NAICS: Manufacturing › Fruit and Vegetable Preserving and Specialty Food Manufacturing › Specialty Canning

Product/Service Code: SUBSISTENCE

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

Contractor Details

Address: 200 N 1ST STREET, MCALLEN, TX, 15

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP030003DZ107

IDV Type: IDC

Timeline